Front Street Resource Hedge Fund Ltd.

Objective: To provide Participating Shareholders with long-term capital appreciation by investing primarily in securities of business entities operating in a range of natural resource sector industries including mineral resource mining and exploration, forestry, oil and gas exploration and production, the power generation market, and water resource projects.
The Fund will make its investment selections based predominantly on the merits of specific issuers, without a strong emphasis on financial, economic or political events which often have market effects which are difficult to predict. Capital growth will be targeted through the selection and strategic trading of both long and short positions in equity, debt and derivative securities.